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Egypt’s LNG strategy might change for this summer

According to Bloomberg, Egypt could pivot from an exporter to an importer

What:

Egypt is eyeing the international markets to bring in Liquefied Natural Gas (LNG) before the summer heat turns up the demand. Despite being a net LNG exporter since 2018, the government is in talks, eyeing Jordan’s Aqaba LNG terminal for imports, Bloomberg reported citing sources with knowledge on the matter. This plot twist comes as domestic gas production dips and domestic demand goes up.

So What:

After shining as an LNG exporter, aiming to cater to Europe with its 12 million tons/year LNG feast, Egypt finds itself short due to a hot summer and a pause in gas supplies from Israel, cutting its LNG exports by a hefty 52% to 3.52 million tons in 2023.

Now What:

Plans are on the drawing board for Egypt to possibly use Jordan’s Aqaba LNG import terminal starting next month, with dreams of having its own import terminal down the line. This maneuver is about keeping the lights on and the ACs humming as the summer season approaches, ensuring that Egypt’s energy appetite is satisfied while it gets back on track with its export aspirations.